Protectionists dislike trade and migration. And capital flows?

Feb 26th 2026|Hong Kong|3 min read

GLOBALISATION HAS had a tough decade. Tariffs and export controls have impeded the flow of goods. Immigrant-bashing politicians have discouraged the flow of people. What about the movement of capital? It is controversial, even among economists. They fear that, unfettered, it can amplify speculation, distort exchange rates and expose countries to mismatches between local assets and dollar liabilities. Even in America, which imports more capital than any other country, influential thinkers have contemplated taxing bond purchases by foreigners to keep the dollar competitive. In this era of nationalism, has capital become less cosmopolitan?